Bangladesh exports jump 31% in August

Daily Times

Friday, September 24, 2010

DHAKA: Bangladesh’s exports in August surged 31.25 percent to $1.79 billion from a year earlier, led by strong demand for the country’s readymade garments, data showed on Thursday. In the fiscal year that ended in June, exports rose 4.11 percent to $16.2 billion as the global economy gradually recovered, although that was still 7.9 percent below the government’s target amount. Sales in July rose 26.5 percent to $1.82 billion, the impoverished south Asian country’s highest ever. Earning from knit textiles in July-August, the first two months of the current fiscal year, rose 32 percent to nearly $1.6 billion from the previous year, while woven garments rose 30 percent to $1.3 billion, the Export Promotion Bureau said. Orders for clothes, which account for 80 percent of Bangladesh’s overseas sales, are growing from its key markets the United States and Europe. Traders and officials said the garment sector had seen a steady recovery since January, along with the recovery in the global economy. Bangladesh is fast becoming part of the global supply chain for low-end textiles and clothing because of its cheap labour costs. In late July, the government nearly doubled the minimum monthly wage for millions of workers in the garment industry to 3,000 taka ($43), which will take effect in November, but wages are still low compared with rivals such as China, India, Vietnam, Thailand and Cambodia. Bangladesh makes garments for international brands such JC Penney, Wal-Mart, H&M, Kohl’s, Marks & Spencer and Carrefour. Meanwhile, the government has increased the amount of credits available, cut tax and offered cash incentives to explore new markets to garments exporters. reuters The government expects exports to climb 14 percent this fiscal year to $18.5 billion, with targets of $7 billion from knitwear and $6.6 billion from woven garments.